Bank loans made cheaper after SBI | Latest Finance News 2020

Good news: there will be no shortage of money, these bank loans are made cheaper after SBI loans

On Friday, the RBI cut the policy rate repo by 0.75 per cent.

After the country's largest bank State Bank of India (SBI), now Bank of India has also given relief to customers. Bank of India has decided to pass on the full benefit of the policy rate cut by the Reserve Bank of India (RBI) to the customers.

Reduction in external benchmark lending rates

Bank of India has cut the external benchmark lending rates by 75 basis points, or 0.75 per cent, on Sunday. After this cut, the external benchmark lending rate has come down to 7.25 per cent. This reduction in interest rates by the bank will be effective from April 1.

MCLR cuts too

Apart from this, the bank has also cut the Marginal Cost of Lending Rates (MCLR). It has come down by 0.25 per cent. This deduction has been made for all periods. For the period from one month to one year, 0.25 per cent was deducted, while for an overnight period of 0.15 per cent. For one year, the bank's MCLR is now 7.95% per annum.

Bank of Baroda also benefited

Bank of Baroda has cut the interest rate for retail, private and micro, small and medium (MSME) industry loans by 0.75 per cent. After this, the loan interest rate has come down to 7.25 per cent, which is valid from March 28. The bank said in a statement that it has reduced its repo rate linked loan interest rate (RLLR) by 0.75 per cent. The bank said that interest rates of 7.25 per cent will be charged on all types of retail and private loans from 28 March 2020.

The biggest reduction in repo rate in 15 years

The Reserve Bank had cut the policy rate repo by 0.75 per cent in the 7th Bi-monthly Monetary Policy Review announced on Friday. This is said to be the biggest reduction in the last 15 years. This has been reduced from 5.15 per cent to 4.40 per cent. At the same time, the central bank to stop the coronavirus, given the 21-day lockdown (closed), the banks and financial institutions to ban the instalment of loans for three months, in view of the impact on the income and economic activities of the people. Is allowed

SBI gave the full benefit of repo rate reduction to customers

After the RBI repo rate reduction, SBI has said in a statement that its new reduced rate will be applicable to the customers taking loans under external standard rate linked lending rate (EBR) and repo rate linked lending rate (RLLR). The new interest rate will be effective from April 1, 2020. SBI reduced the external standard rate linked lending rate from 7.80 per cent to 7.05 per cent per annum, while reducing RLLR from 7.40 per cent to 6.65 per cent.

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